Honda Net Income vs. EBITDA

HNDAF Stock  USD 8.80  0.03  0.34%   
Based on the key profitability measurements obtained from Honda's financial statements, Honda Motor Co may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Honda's ability to earn profits and add value for shareholders.
For Honda profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Honda to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Honda Motor Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Honda's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Honda Motor Co over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Honda Motor EBITDA vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Honda's current stock value. Our valuation model uses many indicators to compare Honda value to that of its competitors to determine the firm's financial worth.
Honda Motor Co is one of the top stocks in net income category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about  2.40  of EBITDA per Net Income. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Honda's earnings, one of the primary drivers of an investment's value.

Honda EBITDA vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Honda

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
707.07 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Honda

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.7 T
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Honda EBITDA Comparison

Honda is currently under evaluation in ebitda category among its peers.

Honda Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Honda, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Honda will eventually generate negative long term returns. The profitability progress is the general direction of Honda's change in net profit over the period of time. It can combine multiple indicators of Honda, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan. Honda operates under Auto Manufacturers classification in the United States and is traded on OTC Exchange. It employs 204035 people.

Honda Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Honda. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Honda position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Honda's important profitability drivers and their relationship over time.

Use Honda in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Honda position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Honda will appreciate offsetting losses from the drop in the long position's value.

Honda Pair Trading

Honda Motor Co Pair Trading Analysis

The ability to find closely correlated positions to Honda could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Honda when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Honda - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Honda Motor Co to buy it.
The correlation of Honda is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Honda moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Honda Motor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Honda can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Honda position

In addition to having Honda in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Soft Drinks Thematic Idea Now

Soft Drinks
Soft Drinks Theme
Entities manufacturing and distributing non alcoholic beverages across different markets. The Soft Drinks theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Soft Drinks Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Honda Pink Sheet

When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock:
Check out Risk vs Return Analysis.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
To fully project Honda's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Honda Motor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Honda's income statement, its balance sheet, and the statement of cash flows.
Potential Honda investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Honda investors may work on each financial statement separately, they are all related. The changes in Honda's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Honda's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.